First-Time Buyer Tips
Make your first home a success story: Follow our proven tips and tricks!
Buying directly from a homeowner can save thousands of dollars for savvy homebuyers. The current market is packed with opportunities for buyers who are willing to take the plunge and purchase a home without going through a real estate agent or broker. A middleman isn’t involved, so there are no extra expenses incurred by them.
It’s time to start the process of buying a home if you’ve decided to do so. You can buy your first home directly from the owner by following this guide.
The location
In a large part, your search area will depend on how much house you can afford. Calculate the total cost by taking into account things like HOA fees and commuting expenses, as well as asking prices. Our mortgage calculator will help you determine your affordability. The total amount you can offer is equal to the amount of your down payment and your mortgage. Most lenders require a 10 percent and 20 percent down payment.
Find out if you’re pre-approved
You should find a lender and get pre-approved for a loan once you know what you can afford. Because a seller knows you’re acting in good faith, it’s the best negotiation tool. You can also better target your search by knowing how much you can offer if you are pre-approved. Make sure your credit score is good, that you have the mortgage calculations you made, and that you have supporting documents, such as income proof, to bring to your lender’s office.
Be smart when searching
Now it’s time to get to work. Look at homes in your target neighborhoods. Keeping track of all the properties you are considering is easy with this handy checklist. When you have toured several homes, they tend to blend together in your memory. So, take good notes.
Get straight to the source
When you buy a home there are no middlemen. If you find a property you want to know more about, email or call the owner and ask for a showing. Take your checklist with you, ask lots of questions and take notes. Is the home a fit for your price, location, and function? Any personal deal breakers?
Take a look at the comps
We’ve developed our Pricing Scout tool to help you compare your home to recently sold homes in the area once you’ve narrowed down your home search. It should give you a rough idea if the asking price is reasonable based on this computer-generated valuation report of 20 nearby recent home sales.
Consider hiring an attorney
Allow a few hundred dollars in your budget to hire a real estate lawyer. As you move from offer to closing, this person will be able to offer you invaluable guidance and advice.
Make Your Offer
You are now ready to submit an offer after following all these steps! Visit our Real Estate Forms section to preview the necessary forms, then let your lawyer fill them out. Your offer needs to be flexible without being lowballing. You can also rely on your attorney’s advice in this area.
Mortgage Rate
Your next step is to contact your lender to get your mortgage “locked in” for 30 to 60 days once you and the owner have agreed on a price. As part of the appraisal process, an appraiser from your lender will examine the terms of the sale and the property by comparing it to neighboring properties. The appraiser’s report can be taken back to the owner for renegotiation if problems arise.
Perform a home inspection
A home inspection will be easier if you do some research ahead of time. Licensed home inspectors can provide you with a report on the condition of your house. The process will take about two hours and cost about $500. In the inspection report, you will find out if there are mechanical or structural problems, which will be helpful in negotiating.
Close the deal
Most of the details at closing will be handled by your real estate attorney. Lots of paperwork will need to be signed. Coordinating financing and payments to the seller will also be handled by your attorney and mortgage lender. A deed is signed over by the seller, a check is signed, and your new home is yours!